Nicholas Calcanes has worked in many different positions with Bank of
America and many other financial companies throughout his career. His
most recent position is Chief Information Officer, which involved, among
other things, working on wholesale credit services for large
corporations. Many people use credit cards for their personal finances,
but they may not be aware of how to use credit effectively as a
business.
Businesses should approach credit differently than
individuals should. Businesses do not need to worry about ‘building
credit’ in the same way that individuals do, but instead can use credit
to help keep business running if there are any cash flow issues. Because
business finance is cyclical in nature, this is often very necessary to
keep a business running. Business credit lines are actually much easier
to deal with than a traditional credit card, because they typically do
not have the fees and minimum payments that a credit card would have.
For small business owners, it is very important to set up a business line of credit sooner rather than later. Lenders often use your business credit to assess the health of your business, and using personal credit for business operations can be detrimental to both your own credit score, as well as your businesses’ credit. Just as with a personal credit card or credit line, it is important to make payments on time and monitor all charges to ensure a good credit score for your business.
Businesses should approach credit differently than
individuals should. Businesses do not need to worry about ‘building
credit’ in the same way that individuals do, but instead can use credit
to help keep business running if there are any cash flow issues. Because
business finance is cyclical in nature, this is often very necessary to
keep a business running. Business credit lines are actually much easier
to deal with than a traditional credit card, because they typically do
not have the fees and minimum payments that a credit card would have.For small business owners, it is very important to set up a business line of credit sooner rather than later. Lenders often use your business credit to assess the health of your business, and using personal credit for business operations can be detrimental to both your own credit score, as well as your businesses’ credit. Just as with a personal credit card or credit line, it is important to make payments on time and monitor all charges to ensure a good credit score for your business.
